Lux Research Ranks Water IT Companies
Water information technology (IT) is a $530 million market today, with potential to address a $16.3 billion market in 2020, according a new report from Lux Research (subscription required).
"Ranking Water Information Technology Companies on the Lux Innovation Grid" provides a snapshot of five market segments: water mapping, water infrastructure, water quality monitoring, smart meters, and smart irrigation. It also quantitatively ranks companies within each segment according to their technical value, business execution, and maturity.
"Water IT hasn't received much attention until now, but the need for water management is bringing it to the fore," said Heather Landis, an analyst for Lux Research, and the lead author of the report. "Utilities are becoming more and more accountable for water losses, but they lack the tools they need to measure those losses. Water IT not only provides solutions, it can save utilities money by helping them dial-in on what parts of their infrastructure need to be fixed."
The report pulls from information gathered in over 50 interviews with executives of companies working in the space over the last year and rated them on Technical Value, Business Execution, and Maturity.
From this analysis, Lux found that:
- Entrenched companies make it difficult for start-ups to enter the market because there is often little incentive for utilities to change the status quo. Successful start-ups offer innovative solutions such as Derceto's technology for reducing energy usage or TraceDetect's online analyzer, which discloses real-time arsenic concentrations in drinking water.
- Likely winners will provide a complete water management solution, such as Miya, which helps utilities and municipalities reduce water losses and unaccounted-for-water in the distribution and sewer systems.
- Systems integrators like IBM will play a dominant role in the water IT market. Start-ups and small specialists will be wise to hitch their wagon to a leading integrator to ensure their product has global reach.